JC Penny Stock Drops to 1982 Levels!

Morning Folks!!

As you know I have written several blog posts about JC Penny's. You might ask why? I might ask you why you ask?

See there are lessons to be learned in all successes and all failures. This is a slow motion failure so you can watch it very closely and learn a to.

JCP has so many problems, where do you even begin? Well how about this post? This Post?

In 2007 I gave Kudo's to JC Penny for owning Gift.com

Barron's Says: "It’s getting ugly for J.C. Penney (JCP). The beaten-down retailer has dropped 6.2% to $7.89 at 12:44 p.m., which would be its lowest closing price since Mar. 9, 1982. What more can you say about the train wreck JC Penney has become?"

$8.00 30 years ago? Really? In today's dollars, that $8 would be worth less than $1.

We are witnessing a company that stood tall for close to a century  that is now dying. There is no room in the eco systems for JC Penny as it exists today. They have been SQUEEZED out of the marketplace. Survival is doubtful and I don't know that they are a good bet as a takeover.

Rick Schwartz



5 thoughts on “JC Penny Stock Drops to 1982 Levels!

  1. Homero A. Gonzalez

    Rick, they still own Gift.com but it redirects to jcpenney.com, they own jcp.com (a great 3 letter domain… do you think it is a good idea to own such a category defining generic domain, short, easy to remember etc… a killer domain name, and just redirect it to your JCPenney.com website??. (it would be marginally better imho to redirect to JCP.com instead) This domain Gift.com has such potential, that I think that if they develop and exploit it, it could be a real moneymaker for them. I mean develop it and market it as GIFT.com, not just use it to redirect it.

    Reply
  2. DonnyM

    Last year I had alu, yahoo and tucows on my buy list. Maybe 5k investment. Could of made 250% return in one year but then I thought why do that. Buy a domain name for 5k and get 100% return every year.
    The only value is the commercial real estate that is owned if any. Hey you can still get the the 3.00 puts in 2014 i think..LOL.

    Maybe they should rebrand to JCdollar.com They could sell 1 share of JCP penny and buy the name…

    Donny

    Reply
  3. UFO

    @Homero

    Unfortunately these large corporates have absolutely no idea how to use these types of domain names. These companies have to collapse as thats the only way they can rid the market of executives who are still stuck in the 1990s and earlier thinking.

    Reply
  4. LSM

    4.4b annual nut, excluding Cap Ex which is projected to run 600mm going into fy14, all paid for by debt. They say unadjusted BV is $10.53 but I haven’t looked at the individual valuations. It’s an interesting one for sure, bets on “formerly iconic brands gasping their last breaths” are historically bad bets. Personally speaking, I don’t know *anyone* who shops there and unless they have some spectacular strategy to move way upmarket and can afford to sustain the transition, I can’t imagine a renaissance in the brand.

    You look at the companies that made up the Dow in 90, 80, there’s a lot of old glory in the garbage can.

    Reply

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